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  • 2019 FBT return calculation details – taxable employers

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    Return calculation details – items 14A to 23

    14A Type 1 aggregate amount

    The type 1 aggregate amount is the total of all type 1 fringe benefits.

    Type 1 fringe benefits are benefits where you (or a member of the same GST group) are entitled to a GST credit for GST paid on the benefits provided to an employee. These are referred to as GST-creditable benefits.

    The rate you use for your calculation is higher than the rate for calculating the type 2 aggregate amount because it recovers the GST credit you are entitled to.

    Goods and Services Taxation Ruling GSTR 2001/3 Goods and Services Tax: GST and how it applies to supplies of fringe benefits explains which benefits you are entitled to a credit for.

     

    Example 1: Type 1 fringe benefit

    You provide an employee with a television costing $660, including GST. If you are registered for GST, you can claim the GST credits. This is a type 1 fringe benefit that you calculate at the higher rate.

    End of example
    Calculating your type 1 aggregate amount

    To calculate your type 1 aggregate amount:

    • Step 1: Work out the total taxable value of all the fringe benefits you provide for which you can claim a GST credit
      • If not already included, add any excluded fringe benefits that are GST creditable to the total amount. Excluded benefits are those benefits that you provide that are not included on your employees' payment summaries.
       
    • Step 2: Multiply the result from step 1 by the higher gross-up rate of 2.0802
      • Grossing up means increasing the taxable value of benefits you provide to reflect the gross salary employees would have to earn at the highest marginal tax rate (including Medicare levy) to buy the benefits after paying tax.
       

     

    Example 2: Type 1 aggregate amount

    You provide the following benefits to your employees:
    • Car for private use. These are
      • car fringe benefits calculated using the statutory formula method (as you did not elect to use the operating cost method)
      • GST taxable supplies with entitlements to GST credits.
       

    The taxable value of the car fringe benefits are $10,000.

    • Reimbursement of restaurant meals not provided under a salary packaged arrangement. You elected to classify these expense payment fringe benefits as meal entertainment fringe benefits. These are
      • excluded benefits as they are not reported on your employees' payment summaries
      • GST taxable supplies with entitlements to GST credits.
       

    The taxable value of these expense payment fringe benefits is $1,000.

    Step 1

    Total taxable value of type 1 fringe benefits amount

    $10,000 + $1,000 = $11,000

    Step 2

    Type 1 aggregate amount

    $11,000 × 2.0802 = $22,882.20

    End of example

    14B Type 2 aggregate amount

    The type 2 aggregate amount is the total of all type 2 fringe benefits.

    Type 2 fringe benefits are benefits you (or a member of the same GST group) can't claim GST credits for because:

    • you (or they) are not entitled to – for example, you are not registered for GST
    • there are no GST credits available because the benefit is either of the following
      • GST-free (for example, school fees)
      • input taxed (for example, residential accommodation).
       

    These are referred to as non GST-creditable benefits.

    The rate you use for your calculations is lower than the rate for calculating the type 1 aggregate amount because you are not entitled to a GST credit.

    Example 3: Type 2 fringe benefit

    You reimburse an employee $700 for their child’s school fees. The supply of school fees are GST-free – you can’t claim a GST credit. This is a type 2 fringe benefit included in your type 2 aggregate amount.

    End of example
    Calculating your type 2 aggregate amount

    To calculate your type 2 aggregate amount:

    • Step 1: Work out the total taxable value of all those benefits for which you can't claim a GST credit
      • If not already included, add any excluded fringe benefits for which you can't claim a GST credit.
       
    • Step 2: Multiply the result from step 1 by the lower gross-up rate of 1.8868.

     

    Example 4: Type 2 aggregate amount

    You provide the following benefits to your employees:
    • Reimbursement of school fees. These are
      • expense payment fringe benefits and are GST-free supplies with no entitlement to GST credits. 
       

    The taxable value of the school fees are $6,000.

    • Remote area rent reimbursements. These are
      • expense payment fringe benefits and are input taxed with no entitlement to GST credits. These are also excluded benefits as they are not reported on your employees' payment summaries.
       

    The taxable value of the reimbursements are $3,000.

    Step 1

    Total taxable value of type 2 fringe benefits amount

    $6,000 + $3,000 = $9,000

    Step 2

    Type 2 aggregate amount

    $9,000 × 1.8868 = $16,981.20

    End of example

    14C Aggregate non-exempt amount

    Leave item 14C blank. This item only applies to public and non-profit hospitals, public ambulance services, and eligible public benevolent institutions and health promotion charities. These employers should refer to Not-for-profit employers – completing your 2019 FBT return.

    15 Fringe benefits taxable amount

    Add the amounts at items 14A and 14B and write the total at item 15, even if the amount is nil.

    You must complete this item because it (and item 16) forms the basis of self-assessing any FBT liability.

    16 Amount of tax payable

    Multiply the amount you wrote at item 15 by 47% (the FBT rate for the year ending 31 March 2019) and write the total amount of tax payable at item 16, even if the amount is nil.

    You must complete this item because it (and item 15) forms the basis of self-assessing any FBT liability.

    17 and 18

    Leave these items blank. These items only apply to rebatable employers.

    Rebatable employers should refer to Not-for-profit employers – completing your 2019 FBT return.

    19 Sub-total

    Write the amount you wrote at item 16. If you are a rebatable employer, you should refer to Not-for-profit employers – completing your 2019 FBT return.

     

    Illustration 1: Items 14–19 of a taxable employer return

    These figures are from example 2 and example 4.

    Extract of Items 14 to 19 of 2019 FBT return:
• Item 14A Type 1 aggregate amount is $11,000 × 2.0802 = $22,882
• Item 14B Type 2 aggregate amount is $9,000 × 1.8868 = $16,981
• Item 15 Fringe benefits taxable amount ((A+B) or C) is $39,863
• Item 16 Amount of tax payable (47% of item 15 amount) is $18,735.61
• Item 17 Aggregate non-rebatable amount (Only complete this item if you are a rebatable employer. Visit ato.gov.au/FBT2019 for more information) is $0
• Item 18 Amount of rebate (47% of (item 16 amount less item 17 amount)(Only complete this item if you are a rebatable employer. Visit ato.gov.au/FBT2019 for more information) is $0
• Item 19 Sub-total (item 16 amount less item 18 amount) is $18,735.61

    End of example

    Make sure you provide the sub-total at item 19 and not at items 17 or 18.

    20 Less instalment amounts reported on activity statements

    Add together the FBT instalment amounts you reported on your four activity statements for the 2019 FBT year, and show the total amount at item 20. We will credit this amount against your 2019 FBT liability.

    Do not include any amount paid for:

    • penalties
    • any other year’s liability.

    If you pay your FBT by instalments, you must lodge all of your activity statements for the FBT year ending 31 March 2019, including the March 2019 quarter, before lodging your FBT return – we can then update your FBT account.

    If all activity statements are not lodged before lodging your FBT return, your return will not be actioned until all instalments are paid.

    If you do not pay your FBT by instalments, leave this item blank.

     

    Example 5: Amounts reported on activity statements

    If your FBT instalment amounts for the year starting on 1 April 2018 were:

    Quarter ending 31 March 2019

    $4,000

    Quarter ending 31 December 2018

    $4,000

    Quarter ending 30 September 2018

    $4,000

    Quarter ending 30 June 2018

    $4,000

    Total instalments for the FBT year 1 April 2018 – 31 March 2019

    $16,000

    You would write ‘$16,000’ at item 20.

    End of example

    21 Payment due

    If the amount at item 20 is:

    • more than the amount at item 19, go to item 22
    • less than the amount at item 19, write at item 21 the exact difference between the amounts.

    The amount at item 21 is the difference between the following:

    • the amount you have paid throughout 2019
    • the amount you must pay by 21 May 2019 (unless you have made other arrangements with us).

    You may round down this amount to the nearest multiple of five cents.

    See also:

     

    22 Credit due to you

    If the amount at item 20 is more than the amount at item 19, write at item 22 the difference between the amounts. We will credit this amount to you. However, if you owe us money for other taxes, we may reduce the amount of the credit you show at item 22.

    23 Details of fringe benefits provided

    The rules for calculating the taxable value of a fringe benefit vary according to the type of benefits provided.

    You must identify the type of benefits provided before you:

    • work out the taxable value of any benefit
    • complete the 'Taxable value of benefits' column.

    We describe each type of benefit in Fringe benefits tax – a guide for employers.

    The figures shown under this item should be amounts before the gross-up calculation is made. Do not include any aggregate amounts at this item.

    Not for profit employers that are both:

    • eligible for FBT exemption
    • have one or more employee(s) for whom they exceed the cap

    will need to report at item 23 the details of the benefits provided to all their employees. These employers don't just report for the employee(s) for whom they exceeded the exemption cap.

    Number

    Write the number of cars, loans or houses (or other units of accommodation) you use to provide car, loan or housing fringe benefits at items ABand F.

    At item A, write the number of cars using the statutory formula.

    At item B, write the number of cars using the operating cost method.

    At item C, write the number of loans granted

    At item F, write the number of housing benefits – units of accommodation

    At item G, write the number of employees who received a living-away-from-home allowance.

    Gross taxable value (a)

    In this column write the sum of the taxable values of fringe benefits for that particular benefit category before any reductions (for example, employee contributions).

    If there are no employee contributions or reductions, include this figure in the 'Taxable value of benefits (a) − (b) − (c)' column.

    Employee contribution (b)

    An employee contribution is a payment you receive from your employee to reduce the cost of the fringe benefit you provide.

    For example, employee contributions include amounts an employee pays to you for using a car or car operating costs, such as fuel.

    Employee contributions are generally assessable for income tax purposes and must be included in your income tax return. If you lodge a company, trust or partnership return, you must also show the amount of employee contributions you received on that return. If you are an income tax exempt employer, you do not need to lodge an income tax return just because you receive employee contributions.

    Write the sum of all employee contributions made for that particular benefit category in this column.

    If you write an amount in this column, the employee must make the contribution before you lodge this return.

    Special arrangements apply if the contribution is made by a journal entry in your accounts. For more information, see Miscellaneous Taxation Ruling MT 2050 Fringe benefits tax: payment of recipients contribution by journal entry.

    Excess employee contributions

    You can't use any excess employee contributions for one benefit to reduce the taxable value of other benefits you provided to that employee or other employees.

    Any excess contribution can either be refunded to the employee or dealt with as agreed between the employer and employee, including being deferred to the following FBT year and applied against the same fringe benefit.

    Employee contributions and GST

    Employee contributions (other than a contribution of services as an employee) are consideration for a taxable supply and you must pay GST on the supply. The GST-inclusive employee contribution reduces the taxable value of the fringe benefit.

    GST does not form part of an employee’s contribution if the:

    • benefit is either GST-free or input taxed
    • GST was paid to a third party – for example, for fuel
    • benefit provider is not registered or required to be registered for GST
    • benefit is not a taxable supply.

    For more information on how GST applies to employee contributions, see Goods and Services Tax Ruling GSTR 2001/3 Goods and Services Tax: GST and how it applies to supplies of fringe benefits.

    Value of reductions (c)

    This is the total amount where benefits of that category have been reduced:

    • under the ‘otherwise deductible’ rule
    • by other means – for example, in relation to in-house fringe benefits.

    The ‘otherwise deductible’ rule only applies if both of the following apply:

    • the recipients of the benefits are current employees
    • you obtain from employees, prior to the day your 2019 FBT return is due or by 21 May 2019, any necessary supporting documents, such as
      • declarations specifying the extent to which the employee was entitled to claim an income tax deduction. This must be in the approved form.
      • receipts
      • invoices.
       

     

    Find out about:

     

    Taxable value of benefits (a) − (b) − (c)

    This is the sum of the taxable values of fringe benefits of that particular benefit category, after taking into account any employee contributions and/or other reductions for each fringe benefit. If the total of the employee contributions and reductions are greater than the benefit you provided, show zero on the FBT return, not a negative amount.

    When completing this column, make sure you also complete the 'Gross taxable value (a)' column – see Fringe benefit categories.

     

    Illustration 2: Items 19–23

    These figures are from example 2, example 4 and example 5. Your subtotal is $18,735.61

    Extract of Items 19 to 23 of 2019 FBT return:
• Item 19 Sub-total (item 16 amount less item 18 amount) is $18,735.61
• Item 20 Less instalment amounts reported on activity statements (Visit ato.gov.au/FBT2019 for more information) is $16,000
• Item 21 Payment due is $2,735.61
• Item 23 Details of fringe benefits provided is as follows:
• 23A Cars using the statutory formula, number is 1, gross taxable value is $10,000, employee contribution is $0 and taxable value of benefits is $10,000.
• 23E Expense payments, gross taxable value is $9,000, employee contribution is $0, value of reductions is $0 and taxable value of benefits is $9,000.
• 23P Meal entertainment, gross taxable value is $1,000 and taxable value of benefits is $1,000.

    End of example

    Declarations – items 24 and 25

    24 Registered tax agent’s declaration

    Registered tax agents are required to sign the declaration at item 24.

    25 Employer’s declaration

    You must complete this item if you lodge your 2019 FBT return on your own behalf.

    Public officer or authorised officer declaration

    The public officer is responsible for doing all things required by the company. In the case of default, the public officer is liable to the same penalties.

    A public officer, or authorised officer, must sign and date for companies.

    Partnership

    One of the partners must sign and date the declaration.

    Trust

    The trustee or public officer must sign and date the declaration.

    Government bodies

    The delegated officer must sign and date the declaration.

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    Last modified: 26 Mar 2019QC 58352